OLYMPIA, Wash. — The potential creation of public authorities to run hydrogen manufacturing and distribution facilities in Washington drew praise from transit authorities and criticism from the state’s business community at a hearing of the Senate Environment & Energy Committee Wednesday.

Senate Bill 5325,  sponsored by Sen. Sharon Shewmake (D), would allow the creation of “public transportation benefit areas” to boost the use of hydrogen-fueled vehicles.

The bill would allow local governments to create authorities and to seek federal funding and ask voters for a sales tax, a business-and-occupation tax, or a utility tax to produce and sell hydrogen to power vehicles.

The transit authorities from Lewis County (just south of Olympia) Pierce County (Tacoma) and Kitsap County (across Puget Sound from Seattle) supported the bill Wednesday.

But Mike Ennis, representing the Association of Washington Business, criticized the bill, saying it would give local governments a competitive advantage over private ventures.

Washington has four hydrogen facilities being built or under consideration.

The Twin Transit Authority in Lewis County expects to have a hydrogen refueling station running by the end of this year. Its first customers will be a few hydrogen-fueled buses.

The Douglas County Public Utility District is building a hydrogen manufacturing facility next to the Columbia River in central Washington that is also aiming to be operational by the end of this year. The PUD plans to buy a handful of hydrogen-fueled vehicles and will ship the bulk of its hydrogen elsewhere.

The Port of Seattle and the Kitsap County Transit Authority are also considering whether to manufacture hydrogen.

The Port of Seattle and the Douglas County PUD did not attend Wednesday’s hearing.

Washington does not have any hydrogen vehicles because there is no way to refuel them. David Warren, head of Twin Transit, said the creation of hydrogen refueling stations is handicapped by the lack of such vehicles. “It’s a classic chicken or egg” situation, he said.

Warren said Interstate Highway 5 — which stretches from Vancouver, B.C., to Seattle, Portland and Los Angeles — would be a good corridor to locate hydrogen refueling stations.